Strategic Business Report: Cavanagh & Baker - Market, SWOT & Finance

This report provides a comprehensive analysis of Cavanagh & Baker, a multinational organization operating in the retail industry. It covers various aspects of the business, including a PESTLE analysis highlighting the impact of political, economic, social, technological, legal, and environmental factors on the company. The report delves into market and industry analysis, examining the competitive landscape and the dynamic needs of customers. Competitor analysis focuses on key players like Sainsbury and Asda, while the marketing and pricing strategies section emphasizes the importance of differentiation, positioning, customer segmentation, and competition analysis. Furthermore, the report outlines an operations plan, highlighting the production function and the need for effective supply chain management. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats, and the report concludes with a discussion of the financial requirements necessary for Cavanagh & Baker to maintain its competitive edge and achieve sustainable growth.

Summative assessment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Business details of the Cavanagh & Baker. ...............................................................................3
Market & Industry analysis........................................................................................................5
Competitor analysis.....................................................................................................................6
Marketing & Pricing Strategies..................................................................................................6
Operations Plan...........................................................................................................................8
SWOT analyses of Cavanagh & Baker. .....................................................................................9
Financial requirements..............................................................................................................10
CONCLUSION ............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is related to the buying and selling of product and services by the organisation
in term of money. It plays an important role in the development of the economy and also the
welfare of the nation. One of the most important factor which influence the success and failure of
the organisation is the innovation and creativity in product. This report is based on the well
known organisation called Cavanagh & Baker. It provides brief discussion related to business
details, macro environment factors, market analyses, competitor analyses, operational plan Swot
analyses and financial requirements.
TASK
Business details of the Cavanagh & Baker.
It is important for the organisation that they evaluate the external environment effectively
because there are many factors and aspects present in external environment which impacts the
business of the organisation in different manner such as positive or negative. It is the duty of the
managers of the organisation to develop effective measures after evaluating the threats from the
external environment. The brief discussion related to the PESTLE in context of Cavanagh &
Baker. are given below:
Political
This section pestle analyses is related to the impact of policies and rules made by the government
of the respected country where the organisation operates their business. If the government passes
any bill it will impact the business of the organisations in different manner as related to the
nature of the bill (Bessonova and Gonchar, 2019). Cavanagh & Baker. is a multinational
organisation which deals in many countries of the world and the impact of the government
policies influence the business of the organisation. One of the most important factor negatively
impacts the business of Cavanagh & Baker. is Brexit. Under this agreement, the United kingdom
withdraws all the agreements related to the business from European Union (Chegeand et.al.,
2020). It become very difficult for the management of Cavanagh & Baker. to operates their
business operation in European nations.
Economic

There are many factors present in the economy which influence the management of the business
such as economic growth, Unemployment and different types of indexes. It is very important for
the management of these organisation to evaluate these factors effectively so that they develop
measures to deal with. One of the most important economic issue which is faced by all the
organisations of world and also Cavanagh & Baker. is global recession due to the covid
pandemic. It is proved by many examples that the management of company plays great role in
this pandemic on the basis of their effective management.
Social
This section of analyses is related to the social belief, tradition of the customers of the
organisation. The success and failure of product of company in any particular region is depend
upon the company's focus on the tradition and belief followed in the region. It is the duty of the
management that they develop the product in such as manner which promotes the tradition and
protect the belief of the customers. In the present scenario, all the customers demand organic
product so the management of Cavanagh & Baker. shift their product line to the organic
products.
Technological
One of the greatest change which is seen in the present business world is occurred due to
change and development in the technology. Nowadays there are many technologies are present in
the market which can be used by the organisation and improve their business processes. These
technologies are internet of things, online marketing and many more. These technologies not
only provide support to the management but also attract the customers towards the organisation.
There are many technologies are used by Cavanagh & Baker. and online shopping facility is one
of the greatest of them because it helps the company to deal with the pandemic issues.
Legal
It is related to legal requirement which the organisation has to fulfil in their business. There are
legal proceeding and regulation are developed by the government for the protection of their
citizens from malpractices of the companies (Cunninghamand et.al., 2019). These impacts
directly on the business of the organisation and it is the compulsion on the organisation to fulfil
these requirements because the non fulfilment of these makes company liable for many law suits
and penalties.
Environmental

There are many rules and regulations in relation to the protection of environment from the
harmful impact of business on the environment. These rules are based on the waste managent
and environment programmes.
Market & Industry analysis
The management of Cavanagh & Baker. operates their business in the retail industry of the
United kingdom where there are large number of organisations conducts their business in the
same industry and creates extensive competition for Cavanagh & Baker. (Dengand et.al., 2019).
It is analysed by the organisation that the quality in product and effective marketing framework
is the only solution of this problem. Organisation try to develop many marketing tools which
aware the company to their customers about the merits of their product and increases their
demand.
The customers of the Cavanagh & Baker. has dynamic need and preference in the market
as they demand new and innovative product regularly which becomes challenging for the
organisation. It is required for the organisation that they develop effective research and
development department in the organisation and provide them sufficient resources so that new
and innovative product can be developed fast. It is seen after covid that the need and preference
of the customers towards the healthy and organic grocery product. The management of
Cavanagh & Baker. is try to shift their production line towards the preference of the customers.
Characteristics of retail industry of UK
The retail sector of the United kingdom is the largest sector of the country in term of the
employment which provides work to more than 2 million people of the country. This
characteristics of the retail industry helps to minimise the problem of unemployment in the
country. Currently the companies operates in this industry manages more than 2,00,000 retail
outlet which provides huge revenue generation. There are many organisation of this industry
which perform their operations in many countries and become the greatest organisations of the
world such as Cavanagh & Baker., Sainsbury, Unilever and many more.
Competitor analysis
It is not possible for any organisation that they does not have competitors in their
industry. These competitors plays an important role in the success and failure of the organisation
because if the company are able to deal with it become success if they become fails to deal with
(Ganda, 2019). Cavanagh & Baker. operates their business in retail sector of United kingdom

where there are large number of organisation and many big players creates extensive competition
which make difficult for the management of Cavanagh & Baker. to manage their profit margins.
The brief discussion related to the competitors of Cavanagh & Baker. are given below.
Sainsbury
This is the second best retailer of the United kingdom which holds almost 16% of the market and
become threat for the management of Cavanagh & Baker.. The management of Sainsbury is
known for their customer friendliness which helps the company to charge the premium pricing
for their product and services.
Asda
This organisation is the third largest retailer of the world which holds almost 15 percent of the
market share. It is the subsidiary of Walmart and famous for the penetrating pricing policy in the
market. One of the most important of this company is their expansion day by day
(Giannopoulou, and et.al., 2019). Currently the organisation operates more than 500 stores and
earns huge revenue.
Marketing & Pricing Strategies
The organisation which is discussed above is only the big organisation but there are many
local organisation present in the market which provides competition to Cavanagh & Baker..
These companies has strong marketing framework which impacts the sales and customer
attention of Cavanagh & Baker. negatively. It is important for the management of company that
they used different marketing techniques so that their customers attract and demand for the goods
and services.
It is essential for Cavanagh & Baker. to focus upon different marketing functions in order to
develop different operations and functions in a precise manner. It is the major responsibility of
marketing management to focus on all the marketing tasks and achieve marketing goals within a
set period of time. Company should involve practices of marketing in a distinct manner to
develop different operations related to marketing. It is the ethical duty of marketing management
of Cavanagh & Baker. to develop systematic and precise business operations in order to lead the
market by develop competency edge. The main focus of company should be on marketing and
pricing strategy in order to increase revenue and profitability. The main elements of marketing
and its strategy are mentioned below:

 Marketing strategy- Marketing strategy should be developed and evaluated with the help
of sustainable goals and practices in order to gain competitive advantage. Cavanagh &
Baker. should prepare and select effective marketing strategy and approaches in order to
survive at the marketplace. The marketing strategy of Cavanagh & Baker. should be risk
free and involve a brief analysis and assessment in order to compete at the marketplace
(Kuo and Smith, 2018). Marketing strategy should involve different marketing functions
such as advertisement, publicity and promotion of a product to lead global and domestic
market.
 Differentiation- A business should differentiate its products from each other in order to
sell it in large quantity. Cavanagh & Baker. try to provide goods and services in an
unique manner to compile with quality and product development. The cost leadership
should be also practised at Cavanagh & Baker. in order to provide different products and
services at affordable prices.
 Positioning- The positioning of a product refers to the geographical location which is
selected by a business to sell the products. The positioning in Cavanagh & Baker. is
developed and formulated by strategic and top level management in order to develop
systematic operations. Positioning helps a business to develop target market for both
regular and target customers which increases sales ratio.
 Customer segmentation- Customer segmentation is important part of business
development which includes dividing the customers according to category of products
and services. It is important to perform customer segmentation for Cavanagh & Baker.,
marketing management takes help of big data technology which involves maintenance of
customer database on cloud.
 Competition analysis- The Cavanagh & Baker. is facing stiff competition at the
marketplace from different competitors so there is a need to gain competency edge. The
current competitors of Cavanagh & Baker. are Marks and Spencer and Walmart which
majorly impacts on company's operations. In order to face the competition with effective
edge, it is key responsibility of top level and senior board of directors to design and
formulate effective strategy with help of professional strategic management.
 Specific strength of Cavanagh & Baker.- Presence of professional staff in marketing
management is the major strength of Cavanagh & Baker.. The human resource

management is also one of the major strength of Cavanagh & Baker. which also helps in
management of the employees (Lechevalierand et.al., 2019) . The company has good
strategic management which helps it to deliver professional practices in the business.
Operations Plan
It is essential for the organisation that they change their working to deal with the competition in
the market and also achieve the loyalty of the customers because it is one of the most important.
It is essential for the Cavanagh & Baker. that it develops effective operating plan for the
organisation. The brief discussion relation related to effective operation plan Cavanagh & Baker.
are given below
Production function :- it is one the most important process under which the company converts
the raw material into useful product and services. The main factor which is connected to this
process is the cost of production. The management of Cavanagh & Baker. acquired many
technologies such as convene belt, internet of things and robots in this process so that the cost of
production can be minimised.
Location of the stores :- This section is plays a important role towards the attraction of customers
in the product. It is the duty of the managers to analyse those markets where the demand their
product and services arises and also where the number of customers are maximum. These
markets has huge variety of customers, if the company successfully target these customers with
their marketing then it earns huge revenue from it.
Transportation :- It is related to the movement of product from one place to another and effective
transportation channels helps the organisation to provide the right product at the right place on
right time. The management of Cavanagh & Baker. uses airways to supply their product in all
over the world and this also helps the company to achieve cost advantage if all the process
become favourable for the company.
Building parks and premises :- There is an effective plan developed by the management of
Cavanagh & Baker. that they build parks and other premises in areas where the company
operates the business. This initiative by the company provided loyalty of the customers towards
the company. These are also helpful for the company for marketing.
SWOT analyses of Cavanagh & Baker.
SWOT analyses is related to those strategic planning tool or technique which can be used by the
person or organisation to analyse four factors such as strength, weakness, opportunity, and

threats. It is important for the organisation use their strength to minimise their weakness and
different threats in the environment and grab the opportunities. The SWOT analyse helps the
management of Cavanagh & Baker. anlyse these factors and become success in their marketing
plan. The brief discussion related to the same are given below:
Strength
 One of the most important strength of the Cavanagh & Baker. is their strong product
portfolio which helps the company to deal with the competition in the market.
 Anoter important strength of the company is their huge customers base. The management
of Cavanagh & Baker. operates their business in many countries of the world and it
provided customers of different communities which helps the company to make any
product successful in the market.
 The management of the company holds many patent and licence in relation to the
production of goods and services (Lee, 2020). These patent restricts other companies to
use same technology that Cavanagh & Baker. used in their business so it helps the
company to achieve competitive advantage over their customers.
Weakens
 There are many legal controversies and law suits are faced by the company which
become the weakness for the management. These cases has incurred huge legal cost and
also develops negative image of organisation in front of the customers.
 Major revenue of the company came from the region of North America under which the
countries like US, Canada and Mexico plays an important role in revenue generation. The
minor defect in the relation between both the countries become huge loss for the
company.
Opportunity
 Cavanagh & Baker. has huge investment in their research and development department
which helps the organisation to grab all the opportunities in relation to the new and
innovative technology.
 One of the greatest opportunity for the Cavanagh & Baker. is that it made huge
investment in the strategic acquisition which helps the company to deal with different
problems arises in the organisation.
Threat

 The most import threat which every business of the United kingdom are faced in their
business is Brexit. The charges of transportation and wages of labour are increases in the
countries due to them.
 Risk in gas in gas industry.
Financial requirements
Finance is one of the most important aspect of the business because it is required in each and
every function of the business. There are many source of funds are present in the market such as
shares, debentures, long term and short term bank loans angel investors and sees funding. The
brief dussussion related to these are given below
Debentures :- It is related to the debentures which is issued by the company in the market at
specified interest rate with an aim to acquire huge capital for the start up and business. The main
advantage of the debentures is that the ownership of the business remains unchanged and the risk
of changes in power become minimum.
Bank loans :- It is one of the most important and commonly used methods by the organisation to
acquire the long term and short term capital. There are many banks which are having facilities of
loan to business organization at low interest rates. One of the major problem with the bank loan
is that it has lots of of paper work.
CONCLUSION
One of the major thing which is concluded from this report that finance is the most important
aspect which the organisation has tom consider in their business. It concludes brief discussion
related to business details, macro environment factors, market analyses, competitor analyses,
operational plan Swot analyses and financial requirements.

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